Elmet Group Q2 2026 revenue rises 35% on defense demand

Elmet Group reported a 35% year-over-year increase in second-quarter 2026 revenue, reaching $128 million, as defense sector demand for its high-performance materials outpaced expectations.

The company, which specializes in advanced metals and alloys for aerospace and defense applications, attributed the revenue growth to sustained procurement activity from military and aerospace contractors. Analysts had projected revenue of approximately $115 million for the quarter, according to a consensus compiled by Reuters.

Gross profit for Q2 2026 rose 28% to $42 million, while operating income increased 31% to $28 million. The company maintained its full-year 2026 guidance, reaffirming revenue projections of $500 million to $520 million and adjusted EBITDA of $140 million to $150 million.

Elmet’s chief executive officer, John Smith, highlighted the role of geopolitical tensions in sustaining defense budgets, stating that long-term contracts with U.S. and allied defense agencies had provided stability amid broader market volatility.

Shares of Elmet Group were up 4.2% in pre-market trading following the results, extending gains from the previous session. The company’s stock has risen 18% year-to-date, outperforming the S&P 500’s 12% gain over the same period.

Analysts at Jefferies noted that Elmet’s order backlog remained robust, with defense-related contracts accounting for 65% of total bookings in Q2. The firm maintained a buy rating on the stock with a price target of $55, citing strong pricing power and limited exposure to cyclical end-markets.

Elmet Group will host an earnings call to discuss the results and outlook on August 14, 2025.